CALL NOW TO SPEAK TO AN ATTORNEY 1-844-HAFFNER
213-514-5681

Experienced. Aggressive. Reliable. We Fight for You.

  • No Hidden Fees Involved
  • No Obligation to Continue Beyond the Case Review
  • Get All Your Legal Questions Answered
click here for a free consultation

Notable Case Results

  • $ 97,284,817.91

    Class Action
    Mortgage Broker Rest Break
  • $ 8,820,000

    Brain Injury
    Settlement
  • $ 3,000,000

    Insurance Bad Faith
    Settlement

Associations

Recent Results

$ 97,284,817.91

Mortgage Broker Rest Break Class Action

$ 8,820,000

Brain Injury Settlement

$ 3,000,000

Insurance Bad Faith Settlement

Touch below for a free injury consultation.

click here for a

free consultation

no fees until you get paid

What is Insurance Bad Faith and What are the Grounds for a Lawsuit

Click below to share this article:

Insurance is intended to give you peace of mind. But when the tables turn and your insurance provider becomes the source of your distress, do you have a right to file a lawsuit?

When you file an insurance claim, the law states that your insurance provider owes you a duty to act in good faith. This means that the insurance company must not, in any way, attempt to escape its obligation to pay you or look into a claim, as these actions constitute bad faith.

Delving Deeper Into Insurance Bad Faith

Bad faith claims and corresponding lawsuits may stem from any or a number of actions or inactions made by the insurance company.

An insurance company’s applicable duties vary depending on whether the claim is considered “first party” or “third party.” A common example of a first-party claim is when an insurer writes insurance on a property that later on incurs damage. In such case, the company is required to look into the damage, determine whether the policy covers the damage, and pay the appropriate value for the damaged property.

In first-party contexts, bad faith happens when the carrier refuses to acknowledge the claim or has improperly investigated and valuated the damaged property. In rarer cases, bad faith can arise in personal insurance policies or life or health insurance.

In third-party contexts or with liability insurance, specifically, the carrier has two distinct duties. One, the insurance provider must defend a claim even when most of the lawsuit is not covered by the policy. The default rule is that the carrier must cover all defense expenses regardless of the actual coverage limit.

Two, the carrier has a duty of indemnification. This refers to the duty to pay a judgment obtained by a plaintiff against the policyholder, up to the coverage limit, given that the judgment is for omission or a covered act.

Dealing with Bad Faith Insurance: When is a Lawsuit Due?

Bad faith covers a broad range of transgressions. Here are some of the most common reasons insurance companies face a lawsuit for bad faith:

  • Unwarranted denial of coverage
  • Refusal to pay the claim without an investigation
  • Failure to conduct a reasonable investigation
  • Failure to come to a fair settlement when liability is established
  • Offering significantly less money compared to the true value of the claim to settle
  • Failure to confirm or deny coverage promptly
  • Failure to deny or pay a covered claim promptly

Bad faith litigation may result in an arbitration decision, a settlement with the insurer, or a verdict. Keep in mind that every case is unique. This is why when dealing with bad faith insurance practices, it pays to have the professional assistance of a reputable law firm that understands how insurance negotiations work.

Haffner Law has years of experience in navigating this complex area of the law. Let us help you take the necessary steps to recover the full value of your claim.

Schedule a free, no-obligation evaluation of your case. Call us at 1-844-HAFFNER or 213-514-5681 today.

RESULTS

$15,000,000

PROPERTY DAMAGE / BAD FAITH

$10,000,000

Bad Faith

$7,500,000

Medical Malpractice

$750,000

Bad Faith / Disability

$815,000

Wrongful Death

$1,000,000

Construction Defect
view all

INJURED ? CALL 213-514-5681

or

FILL OUT THE FORM BELOW FOR AFREE CASE REVIEW

  • NO PRESSURE
  • SPEAK WITH AN ATTORNEY
  • NO HIDDEN FEES
  • The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Sending time sensitive material to the firm via this message, will not be the responsibility of the firm. Proceed if you've read this disclaimer.
[]
1 Step 1
Type your name here & click nextyour full name
Phoneyour full name
Commentsmore details
0 /
Previous
Next
powered by FormCraft
All Fields Required